News Releases
Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - September 26, 2002
Contact:  Roger Nyhus, Governor’s Office, 360-902-4136 or 360-239-1400 cell
Alt Contact:  Cherie Myers, Safeway, 425-455-8697 or Larry Altose, Washington Department of Ecology, 425-649-7009

Safeway & Boeing Complete Major Property Sale in Auburn; Safeway Poised to Build Regional Distribution Center at Site; Gov. Locke’s Focus on Competitiveness Facilitates Transaction

Greg Sparks, President of Safeway Inc.’s Seattle Division, and Gov. Gary Locke today announced that Safeway has acquired the surplus property at Boeing’s Auburn fabrication facility and will soon begin construction of a 1.4-million-square-foot regional distribution center. Safeway is the third largest private employer in Washington.

For the city of Auburn, it means an economic boost that will create more than 200 new jobs, as many as 800 construction jobs, and revenue to the city estimated at $40 million dollars annually. For the state, it is a clear indication that the governor’s focus on competitiveness issues, such as improvements to the state’s permitting process, is working.

“This project redefines the ability of business and government to work together both effectively and efficiently,” Sparks said. “The timely completion of the transaction is a model that signifies a strong partnership between government agencies, businesses and local communities working together for the common good of all.”

Locke said, “Safeway and the state are hitting a homerun by working together so efficiently. The project is an example of the results we can achieve through clear, early communication about the business goals and the permit requirements. All of Safeway’s timelines were met without sacrificing environmental protections. This project is proof we’re making progress on important competitiveness issues in our state.”

Safeway completed the land acquisition on Sept. 20. In the near future, Boeing will demolish seven surplus buildings that currently sit on the property. Once completed, Safeway will begin installation of utilities and will step in to create an environmentally sound detention pond spanning 4.5 acres for drainage and stormwater treatment. Groundbreaking of foundations and going vertical with the new distribution center is expected to occur toward the latter part of June 2003.

Initial plans call for a 760,000-square-foot dry-goods warehouse and a 515,000-square-foot refrigerated warehouse. Combined with this will be a recycling center, trucking department, dispatch office, fuel station, truck repair shop and an administration center.

With the completion of the project in late 2004 or early 2005, weather permitting, the distribution center will likely employ more than 1,000 employees (800 of whom will ultimately transfer from their existing location in Bellevue and 200+ newly created positions). “We have simply outgrown the Bellevue Center and needed more space to operate efficiently,” Sparks said.

Safeway’s project was unique in that it required three cities working together: Auburn was the lead city (where the property resides) and the adjacent cities of Pacific and Algona (on which the property borders). All three cities, led by their respective mayors, Pete Lewis, Howard Erickson and Glenn Wilson, were committed to enhancing the economic development of Auburn by creating new jobs and expanding the revenue base. Together, the three cities, along with Safeway and Boeing, showed a united partnership with the Governor’s Office and the state departments of Ecology and Labor & Industries.

“Department of Ecology Regional Director Ray Hellwig and Director Tom Fitzsimmons deserve a great deal of credit for the success of the project,” Sparks said. “They showed great leadership and timeliness in their abilities to meet all expectations in the allotted time frame. Gary Moore, director of the state Department of Labor & Industries, also made it a priority to review standards and safety regulations for the proposed site. Both agencies were pivotal in the success of the project.”

Safeway and Boeing sought an expedited permitting approach to assist the real estate transaction. Boeing needed permits to demolish structures on the site, and Safeway needed permits to construct and operate the new distribution facility. Water-quality and stormwater concerns and cleanup issues also needed to be addressed.
The state Department of Ecology’s first meeting with the companies occurred in early June, and permits were issued on July 18 and 19. Paul Isaki, the governor’s special assistant for business, also played a key role in the permitting process.

When complete, Safeway’s new distribution facility will house most of the facilities currently located at the company’s distribution facility in Bellevue. The company will retain the facility, which was built in 1958.

Safeway is a Fortune 500 company and one of the largest food and drug retailers in North America based on sales. The company operates over 1,782 stores in the United States and western Canada and had annual sales of $34.3 billion in 2001. The company’s common stock is traded in the New York Stock Exchange under the symbol SWY.


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